After dull festive season, car sales skid on high interest rates

Hyundai Motor India, the second-largest in the pecking order saw the overall dispatches shrink as compared to a year ago

Automobile makers are bracing for a long winter ahead after a dull festive season, thanks to a higher interest rate on auto loan. Sales have already slowed with vehicle financiers facing a liquidity crunch. 

Reflecting the mood, passenger vehicle sales in November either remained muted or skidded for most manufacturers as high fuel prices and the higher cost of borrowing dampened buying sentiment. 

Seven in every 10 passenger vehicles in India are bought on credit. The cumulative sales of India’s top seven passenger vehicle makers fell 1 per cent over the same month a year ago, showed the data released